The market made gains on the back of strong up-move by index heavyweights like Reliance Industries in a highly volatile session. The Sensex gained 165.87 points, or 0.48 percent, to end at 34,616 and the Nifty rose 29.65 points, or 0.28 percent to settle at 10,614.35. The BSE Mid-Cap and Small-Cap indices ended in the red.

The market breadth was negative as 1,480 shares fell and 1,188 shares rose on the BSE. Among the sectoral indices on the BSE, Oil & Gas was up 1.5 percent and Metal was down 1.82 percent, followed by IT (-1.69 per cent) and Teck (-1.48 percent.)

Technical view

Sameet Chavan, chief analyst-technical & derivatives, Angel Broking, said: “It seems that market has decided to spend some time in the zone of 10,495-10,640 before finding any near-term direction. The more the market respects a particular level, the stronger it becomes. Hence, we do not want to anticipate the breakout at this juncture. For the coming session, 10,569 followed by 10,495 would be seen as immediate support levels.

Market view

Shailendra Kumar, CIO, Narnolia Securities, said: “Post-making the high of 11,171 on Jan 30, the market fell to the level of 9,958 and in the last one month it has inched back to 10,600. At 10600, the Nifty one-year forward PE is 19.5. Surely from PE level of 19.5, there is equal probability of the PE going up to 21 or falling down to 18. The character of the current bounce back is corrective.

“Nifty EPS is expected to grow at 16-17 per cent for FY19 and FY20. We believe that anytime the market falls to the level of one year forward PE of 18, it will be excellent opportunity for investment. Along with global issues, multiple state elections in India this year will surely create multiple buying opportunities on dips. Unlike 2014-17 where the rise in the market was mainly owing to the valuation multiple re-rating, the rally now will be in line with the earnings growth instead of valuation re-rating.”